Financial Intelligence Unit (FIU-IND)

Definition

India's central national agency for receiving, processing, analysing and disseminating information about suspicious and high-value financial transactions, to counter money laundering and the financing of terrorism.

Key points

• The Financial Intelligence Unit, India (FIU-IND) was set up in 2004 as the central national agency under the Department of Revenue, Ministry of Finance, and reports to the Economic Intelligence Council headed by the Finance Minister.
• It is the nodal agency under the Prevention of Money Laundering Act, 2002 (PMLA), receiving reports from "reporting entities" such as banks, financial institutions and intermediaries, including Cash Transaction Reports, Suspicious Transaction Reports, and reports on cross-border wire transfers.
• It analyses these reports and shares actionable financial intelligence with enforcement and intelligence agencies (such as the Enforcement Directorate, the income-tax authorities, the CBI, and the NIA) to trace money laundering and terror financing.
• It is India's member of the Egmont Group (the global network of financial intelligence units) and supports India's compliance with the standards of the Financial Action Task Force (FATF).
• It does not itself prosecute; it generates and routes financial intelligence to the agencies that investigate and prosecute.

Why it matters for CAPF

FIU-IND links the economy with internal security and terror financing; its 2004 setup, its place under the Finance Ministry and the PMLA, and its FATF and Egmont Group links are commonly tested.

Common confusion

FIU-IND is an intelligence and analysis hub, not an investigating or prosecuting body; investigation lies with agencies such as the Enforcement Directorate and the NIA. It operates under the Finance Ministry (Department of Revenue), distinct from the Home Ministry's security agencies.

Related concepts

concept financial action task force, concept unlawful activities prevention act, concept multi agency centre, concept nia

Parent note

terrorism and counter terrorism